[SDIP-4] Veriscope VASP Grant
The Shyft DAO BizDev Committee would like to propose a Shyft community vote on a grant of SHFT tokens to Virtual Asset Service Providers [VASPs] to fund Shyft Network gas fees for their usage in Veriscope until 31 December 2022 or until exhaustion of the grant, whichever is sooner.
Veriscope, built atop Shyft Network, is a protocol to fulfill the requirements of the Financial Action Task Force (FATF) ‘Travel Rule’ that requires the exchange of originator and beneficiary personal information between two VASPs (typically, crypto exchanges and custodians).
It is widely reported that the Travel Rule has been slow to gain traction as regulation is slow to be enacted and enforced, and equally VASPs are concerned about transaction costs and which Travel Rule protocol counterparties will use.
Veriscope has substantial advantages over all other protocols, particularly in respect of a frictionless approach, as well as the data privacy and security of originators and beneficiaries. It is also the only solution to resolve the so-called ‘Sunrise Issue’ where different VASPs start implementing Travel Rule at different times leading to large pockets of non-compliance. Regulators are particularly interested in resolving this issue and have viewed Veriscope positively in this respect.
VASPs are required to post requests for information (attestations) about counterparty VASPs to the Shyft Network, and in so doing incur SHFT gas fees. To facilitate rapid network adoption and remove a barrier to decision making, it is planned that a SHFT token grant will encourage VASPs towards rapid adoption and selection of Veriscope, that in turn will build network traffic, attestations, and the largest community of VASPs on any Travel Rule solution.
The Shyft DAO proposes to grant an aggregate total of 10,000 SHFT towards funding gas fees used in connection with VASP attestations on the Shyft Network until 31 December 2022 or until the grant is exhausted. In order to qualify, a VASP must complete Veriscope integration and commence attestations to mainnet by 30 September 2022.
The feedback process begins now and is expected to end at 17:00 UTC on 03/08/2022. After this, a Snapshot vote is expected to be put up at 17:00 UTC on 04/08/2022 if, in accordance with the rules established for the creation of proposals, there is sufficient interest and support for the proposal from the community.
Following the feedback period, the voting period will last for 5 days thereafter (i.e. until 17:00 UTC on 09/08/2022) for the community members to cast their votes in accordance with the rules established for voting.
For: Approval of the 10,000 SHFT grant to fund the initial seeding of VASP attestations until 31 December 2022 or until the grant is exhausted
Against: Rejection of the 10,000 SHFT grant to fund VASP the initial seeding of attestations until 31 December 2022 or until the grant is exhausted